Seplat Energy Plc has announced plans to increase its oil and gas production following the acquisition and integration of Mobil Producing Nigeria Unlimited (MPNU) assets. The company described the newly acquired assets as a high-quality portfolio with vast reserves and significant production potential.
Speaking during a fireside chat titled “Assets Acquisition Success Strategies: Seplat Energy” at the recent Africa Energy Week in South Africa, Seplat’s Chief Executive Officer, Roger Brown, said the acquisition had bolstered the company’s operational strength by merging Seplat’s onshore expertise with MPNU’s decades of offshore experience. This synergy, he explained, has already begun delivering improved performance and stronger cash flow.
Brown noted that recent upgrades in reserves confirm that Seplat has acquired valuable assets with considerable oil and gas output capacity. He added that much of this potential is easily accessible and located close to export infrastructure under Seplat’s control. According to him, the company is confident of ramping up production in alignment with the federal government’s target of achieving three million barrels of oil per day and boosting gas production for both domestic consumption and export.
Since completing the acquisition, Seplat’s focus has been on rapidly reactivating wells and facilities to deliver immediate results, investing in asset reliability to minimize downtime, and integrating both systems and personnel. Brown highlighted the strong cultural alignment between Seplat and MPNU teams, which has facilitated seamless operations. He praised the expertise of the new employees, noting that their insights have strengthened the company’s overall performance.
Seplat’s growth strategy, according to Brown, is centered on acquiring assets where the company’s operational capabilities can unlock hidden value,particularly in mature fields that require agile and efficient management. He pointed out that Seplat has consistently demonstrated its ability to acquire onshore assets, raise production levels, and maintain strict cost controls.
Emphasizing the company’s commitment to safety, operational excellence, and disciplined cost management, Brown described Seplat as a low-cost operator capable of maintaining profitability at various oil price levels. He stated that the company has successfully navigated periods of low prices and extended market disruptions without compromising its financial stability.
On financing, Seplat’s Chief Financial Officer, Eleanor Adaralegbe, revealed that the company has raised over $4 billion in debt to support operations while keeping its leverage ratio below 1.5 times across business cycles. She explained that Seplat’s financing strategy relies on a diverse mix of instruments, including its Initial Public Offer (IPO), Revolving Credit Facility, Bonds, Advance Payment Facility, and project financing,such as the $320 million facility for the ANOH Gas Processing Company, a joint venture with the Nigerian Gas Infrastructure Company.
Adaralegbe emphasized that Seplat positioned itself as a first mover to attract a broad base of investors and financial institutions, becoming the first and only dual-listed Nigerian oil and gas company. She added that Seplat continues to refinance its obligations to extend maturities and reduce borrowing costs, supported by a well-diversified asset base, stable production levels, and strong financial governance.
Through these strategic moves, Seplat Energy is reinforcing its position as a leading indigenous energy company poised for sustainable growth and greater contribution to Nigeria’s energy sector.
